nectarine
Level 2
12-07-2019
04:09 AM
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I received a W-2 from a client where box 1 (wages is 0) but boxes 3-6 have amounts. This is the first time I received a W-2 like this. The tax payer is a caregiver. Is their an error here or it is possible?
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Level 15
12-07-2019
04:09 AM
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Ive seen them plenty of times....you don't enter a W2 with zero in box 1. Its informational only and doesn't get included in the tax return.
Many caregivers are giving care as part of a Medicaid waiver program and their earnings are excluded from taxable income, but still subject to SS and Medicare, this sounds like your clients situation.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 15
12-07-2019
04:09 AM
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You can research IRS Notice 2014-7 for more information regarding this type of income.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
rbynaker
Level 14
12-07-2019
04:09 AM
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If for some reason SS/MC wages matter (i.e. another job takes you over the SS limit, or you're subject to additional medicare tax) then I would enter $1 as wages just to bypass having to paper file. CAGMC.
Rick
Rick
Level 15
12-07-2019
04:09 AM
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That's true....Ive never had anyone with caregiver wages that had lots of other earned income as well, so I forget that could be an issue.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
rbynaker
Level 14
12-07-2019
04:09 AM
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Me neither. The two don't seem to overlap. But it's mathematically possible. 🙂